Why Every Business Needs an AI Policy: A Warning from HR Experts

With the AI genie firmly out of the bottle, local HR experts are urging all employers to draw up an AI policy – and fast!

According to Peter Jones, Managing Director at HR Dept Swindon, North Wiltshire and East Cotswolds, businesses that fail to address AI usage could be leaving themselves vulnerable to serious risks.

“At HR Dept, we’re increasingly being asked about AI” said Peter. “its role in the workplace, and whether businesses should adopt an AI policy, in the same way that they have policies on areas such as parental leave, flexible working, or health and safety,”

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Peter explained that AI is here to stay and urged businesses to embrace this revolutionary technology, while also recognising its risks. “AI is not something that can be put back in the box, so one way or another it will have a relevance. Our advice is to embrace this emerging technology and recognise that it can be a useful resource.”

But Peter warned use of AI was not without danger – hence the need for an AI policy.

“It’s important to bear in mind that AI – without limits – presents a number of risks, not least to data protection, accountability, transparency and ethical conduct. Drawing up an AI policy will help mitigate these risks.”

What Should an AI Policy Include?

An AI policy should be bespoke to each organisation, ensuring it aligns with the company’s goals and industry requirements. However, Peter recommends including some common elements:

Training and Awareness: Clear instructions on how AI tools should be used responsibly, including the risks of misuse.
Role Definition: A breakdown of who in the organisation is permitted to use AI tools and for what purpose.
Acceptable Use: Specific examples of what tasks AI tools can assist with and what tasks, such as those involving confidential or financial information, are strictly off-limits.

Oversight and Communication: Defined processes for monitoring AI usage and ensuring management is informed before tools are implemented.

Peter added: “A policy should clearly communicate what the expectations are within the business in terms of the use of AI, including what is acceptable use and what isn’t. For example, tasks which have a legal or financial consequence and tasks requiring the input of confidential information or personal data are likely to be ruled out.”

“It is also important to clearly outline communication lines for queries with AI and keeping management informed on what is it being used for – before using it! There is a need to maintain oversight.

“We are very happy to chat through AI policies with employers, and advise on what areas they should cover.”

The HR Dept Swindon team supports clients across Swindon, Chippenham, Hungerford, Marlborough, Calne, Devizes, Burford, Lechlade, and Carterton. They provide HR expertise to various industries, including manufacturing, IT, and trades.

For further guidance, businesses can visit their website or contact Managing Director Peter Jones directly at peter.jones@hrdept.co.uk or by calling 01793 683 398.

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